Cognizant Technology Solutions Corp. (Nasdaq: CTSH) said that it has renewed its contract agreement with Volvo Cars for a period of three years. The companies have been working together since 2011.
Cognizant is a professional services company, which provides information technology, consulting, and business process outsourcing services. CTSH stock has gained 12.7% over the past year.
Under the deal, Cognizant will provide Volvo with finance and accounting (F&A), and procurement services. Also, it covers the Volvo’s global accounts payable and accounts receivable, direct and indirect procurement and logistics services.
The aim is to help Volvo improve efficiency and support its ongoing digital transformation journey by harmonizing its F&A and procurement processes. Furthermore, Volvo will be able to reduce the cost of delivery of business process services and improve overall business outcomes.
The Head of Nordics at Cognizant, Anne-Sofie Risåsen, said, “The automotive industry has been undergoing continuous evolution as business models change and the shift to electric cars has become key to car makers’ goals of climate neutrality. We are proud to support Volvo Cars in its rapid growth across numerous markets.”
“We now look forward to strengthening the already established global standard F&A and procurement processes as we increase our footholds in direct and indirect procurement,” she added.
Recently, Barclays analyst Ramsey El-Assal maintained a Sell rating on Cognizant and raised the price target to $85 from $78. The new price target implies 4.7% downside potential from current levels.
The Street is cautiously optimistic about the stock and has a Moderate Buy consensus rating based on 7 Buys, 4 Holds and 1 Sell. The average Cognizant price target of $96.36 implies 8.1% upside potential.
Hedge Fund Trading Activity
TipRanks’ Hedge Fund Trading Activity tool shows that the confidence in Cognizant is currently Very Positive, as the cumulative change in holdings across all 14 hedge funds that were active in the last quarter was an increase of 2.5 million shares.
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